XAU / USD cannot regain the $ 1,900 level

• Gold’s recovery remains limited below the $ 1,900 area.
• XAU / USD lacks momentum amid market optimism.
• Bearish confirmation below the $ 1,850 support could accelerate the downtrend.

Gold futures they have failed in their attempts to get back above $ 1,900 on Monday and the yellow metal has fallen back to the range of the previous days, with attempts to drop above $ 1,870.

Gold lacks strength amid positive market environment

The bullish attempts of the XAU / USD They stopped just below $ 1,900 on Monday, as the brighter market mood has hit safe-haven gold demand.

Upbeat Chinese industrial production and stronger-than-expected foreign investment figures have confirmed that China’s economy is picking up after the pandemic shock. This has improved investor confidence in the global economic outlook.

Additionally, Moderna’s announcement that its COVID-19 vaccine is 94.5% effective has helped improve confidence and triggered a significant rally in equity markets. The Dow Jones Index has hit record highs near 30,000 and is up 1.24% at the time of writing. The Nasdaq and S&P indices are up 0.39% and 0.81%, respectively.

XAU / USD remains trapped between $ 1,850 and $ 1,900

The bullion continues to move sideways within a range of $ 50 below $ 1,900, consolidating losses after last week’s slide from highs of $ 1,960. On the upside, the pair should break above the psychological level of $ 1,900 and $ 1,910 and the confluence of the 50- and 100-day SMAS to ease the bearish momentum and return towards $ 1,960 (intraday high) and $ 1,995 (high on 1 March). September).

Conversely, a further decline below $ 1,850 (late September lows) would increase the downward pressure and could push the pair towards $ 1,795 (mid-July lows) and finally $ 1,760, the 50% Fibonacci retracement. of the rally from March to July.

Technical levels